The Korean Economic Review
Marriage, Working Spouses, and Male Wage Volatility
Hye Mi You (Hanyang University)Year 2018Vol. 34No. 1
This paper examines whether the recent increase in male wage volatility varies by maritalstatus and spousal work status. Using the Panel Study of Income Dynamics (PSID), weestimate separately a standard residual wage process for all men, married men, and marriedmen with a working spouse over the 1967-2010 period. We find that all three groups of menshared similar trends in the variances of both persistent and transitory wage shocks. Marriedmen, including those with a working wife, experienced a smaller increase in their wagevolatility compared to all men, yet the differences between the two groups are small.